Energy Investors Secures $985M For Power Plant Operator
Connecticut power plant will be completed by 2010.
June 26, 2008
Energy Investors Funds, a New York private equity energy investment firm, said Thursday it has secured $985 million in new financing for power plant operator Kleen Energy Systems.
Goldman Sachs served as joint lead arranger and bookrunner for the Middletown, Conn.-based power plant’s senior secured construction debt financing package, comprised of bank loans and a revolving credit facility. Additional credit details were not released.
Mark Voccola, a vice president of Energy Investors Funds, said the “financing showcases the quality of the project and our development efforts to date.”
Joining Energy Investment Funds in the development of the 620 megawatt-generating Kleen Energy Systems plant 15 miles south of Hartford is co-developer White Rock Holdings Associates.
Energy Investment Funds and White Rock participated in a competitive proposal process to win the development of the power plant, which has 15-year agreement to supply electricity to Connecticut Light and Power.
Kleen Energy, which will use gas and steam turbines, will be managed by Power Plant Management Services while North American Energy Services is handling the plant’s operations. The plant’s construction is slated for completion in 2010.
The investment isn’t unusual for Energy Investment Funds, a 21-year-old private equity firm with offices in Boston and San Francisco that has executed more than 100 investments across the power sector, representing more than $7 billion in assets. Its portfolio of power holdings generates 4,000 megawatts of operating power, while it has an additional 2,200 megawatts of power assets in development.
Fitch assigned a BBB-, or investment grade, rating to Kleen Energy’s debt issuance.
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